Archive for August, 2026



AEA Prepares for Its 2026 Fall Conference

Posted on: August 17th, 2026 by eric

AEA’s 2026 Fall Conference is just around the corner, taking place Monday and Tuesday, November 16–17, at Caesars in Atlantic City. This year’s conference continues AEA’s tradition of providing informative presentations on the issues shaping New Jersey’s environmental authorities while offering valuable networking opportunities with colleagues from across the state.

The conference begins Monday afternoon with a welcome from AEA President Brian Brach, followed by a keynote address from New Jersey Department of Environmental Protection (DEP) Commissioner Ed Potosnak. Commissioner Potosnak, appointed by Governor Mikie Sherrill in January 2026, leads the DEP’s efforts to protect New Jersey’s environment while supporting economic growth. Prior to joining the Department, he served for 14 years as Executive Director of the New Jersey League of Conservation Voters and has been a leader on issues including open space preservation, PFAS, lead in drinking water, and environmental policy. The evening concludes with EPDA Certificate presentations and AEA’s annual networking reception.

Tuesday’s program begins with AEA’s Annual Business Meeting before exploring the organization’s history and evolution. Throughout the day, attendees will hear presentations examining how the environmental industry has changed and where it is headed.

Morning sessions include a look at how safety practices have evolved throughout New Jersey’s water utilities, followed by a discussion of the state’s leadership in addressing PFAS contamination and protecting drinking water. Another will examine lithium-ion battery safety and best practices for protecting solid waste, drinking water, and wastewater utilities.

Following lunch, attendees will learn practical strategies for pursuing congressional funding opportunities before participating in a discussion on artificial intelligence in water operations. Industry experts David Lynch, CEO and Co-founder of Klir, and veteran water utility leader Jeff Mosher will separate the promise of AI from the hype by examining where the technology is delivering measurable value for utilities today.

The conference concludes with The Hidden Profit of a Multi-Generational Workforce: Strengthening the Human Infrastructure Behind Every Environmental Authority, presented by Krishna Powell. Powell, founder and CEO of HR 4 Your Small Biz, has nearly 30 years of experience helping organizations recruit, retain, and lead multigenerational workforces.

As always, the conference offers attendees an opportunity to learn from respected experts, stay current on emerging issues affecting environmental authorities, and exchange ideas with peers from throughout New Jersey.

Be sure to stay through the closing session for AEA’s annual door prize drawings.

For more information and to stay up to date on registration details, agenda changes, and more, visit aeanj.org.

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Retired Utility Regulators Urge Governors to Address Rising Water/Sewer Bills

Posted on: August 6th, 2026 by eric
By James H. Cawley, Esq. and Jeanne M. Fox, Esq.

Jeanne M. Fox, Esq.

   James H. Cawley, Esq.

 
 
 
 
 
 
 
 
 
 
 
 
 
The Governors of New Jersey and Pennsylvania are, commendably, working to lower the cost of electric service. Gov. Shapiro supports reforms to PJM, the regional grid manager; Gov. Sherrill directed the New Jersey Board of Public Utilities to cut electric bills.
 
We urge them to work equally hard for water/sewer customers. Their costs are rising, largely because of so-called “fair market value” (FMV) laws in our states.
 
Because of the 2016 FMV law, Act 12, Pennsylvania American Water (PAW) and Aqua Pennsylvania customers pay $85 million a year over and above what they would have paid — $1 billion so far and growing.
 
New Jersey’s 2015 FMV law (the Water Infrastructure Protection Act or WIPA) boosted expansion plans of investor-owned (corporate) utilities. Since 2015, they have spent about $100 million to buy municipal water/sewer systems. The robust capital programs embedded in sales deals are usually far more ambitious than needed because that’s how corporate utilities enhance profits.
 
Act 12 and WIPA represent a dramatic change to 100 years of investor-owned utility regulation. The state subsidiaries of American Water Works (AWW) and Essential Utilities/Aqua America promoted FMV as a “solution” for “distressed” systems—an entirely spurious claim. Most systems acquired have been healthy and well-managed. 
 
FMV laws made water and sewer rates less affordable. Both replaced the court-tested approach to system valuation with one that overvalues them. The result: grossly inflated purchase prices which the FMV laws allow to be fully recovered in subsequent rates.
 
Anti-customer FMV laws abolished the BPU and the PaPUC power to allow only reasonable purchase prices to be included in rates. Instead of balancing utility and customer interests, FMV enormously favors only the monopoly utility. FMV laws pervert buyer/seller relationships. Municipal leaders see the inflated price tags as windfalls without understanding (apparently) that citizens will pay higher rates and gain no appreciable service improvement. The highly inflated sales prices and the drive to acquire more systems result in ever-higher water/sewer bills. Corporations leverage cash from sales to buy more municipal systems.
 
The buyer has no incentive to negotiate a lower purchase price when full purchase price recovery is guaranteed, and it can recover the costs from customers—whose rates will rise steadily as a result (as we have seen).
 
AWW’s pending acquisition of Essential Utilities makes stopping FMV an urgent matter. AWW is already the largest privately owned water/sewer utility in the U.S. The purchase would expand its monopolistic reach to 17 states, giving AWW unprecedented market power over millions of people. 
 
NJ and Pa. “fair” market value laws are unfair and irredeemable. They should be repealed. Nevertheless, we can propose the following amendments as the bare minimum needed.
 
At the very least, the power of the BPU and PaPUC to determine the reasonableness of purchase prices of both healthy and distressed municipal systems must be restored.
 
New Jersey’s WIPA must clearly define “distressed” and its provision permitting eligibility based on a system’s location must be eliminated.
 
In Act 12, the purchasing utility’s costs for engineers, investment bankers, and attorneys should not be permitted to be charged to customers as a continuing return. The earlier approach of a “once-and-done” return should be restored.
 
Our states must improve public interest oversight in their FMV laws. Use of so-called “independent” engineers and appraisers, including some who regularly work for the utility, must end. The BPU and PaPUC must be authorized to appoint third parties for assessing and appraising the system for sale.
 
Reforms must include timely notification about negotiations, terms, and public hearings. Customers outside the boundaries of the system owner must be notified of pending sales. The Pa. consumer and small business advocates and the NJ Rate Counsel must review FMV transactions. Act 12 must be amended to include a review role for the Pa. Department of Environmental Protection.
 
The 30-day state agency review period under WIPA must be increased to 120 days, similar to non-WIPA transactions. Both laws must be amended to include comprehensive ethics requirements.
 
We urge Gov. Shapiro, Gov. Sherrill to address water/sewer affordability with the same vigor they apply to high electric rates. Repeal Act 12 and WIPA. Protect NJ and Pa. citizens. 
 
 
The authors headed their state’s utilities commissions. Mr. Cawley was appointed to be a Commissioner at the Pennsylvania Public Utility Commission (PUC) in 2005 by Gov. Edward G. Rendell and was named Chairman of the PUC in 2008; Ms. Fox was appointed to the NJ Board of Public Utilities by Gov. James McGreevey and served as its President from 2002 to 2010. She served an additional four years subsequently as a Commissioner. 
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